Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Hydrogen Fuel Cell Vehicle Market size was over USD 2.12 billion in 2024 and is expected to cross USD 269.01 billion by the end of 2037, growing at more than 46.2% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of hydrogen fuel cell vehicle is estimated at USD 2.9 billion..
There is a growing awareness about climate change and air pollution, which has led to an increased emphasis, on transportation options. Hydrogen fuel cell vehicles are appealing to conscious consumers and governments as they only emit water vapor thereby helping to reduce greenhouse gas emissions.
Hydrogen powered vehicles present an option compared to conventional cars with internal combustion engines or electric vehicles using lithium ion batteries. Experts in energy and policymakers see hydrogen as a means to broaden the energy sources and decrease reliance on fuels.
Hydrogen Fuel Cell Vehicle Sector: Growth Drivers and Challenges
Growth Drivers
- Emergence of Technological Advancements - In times there have been significant advancements in fuel cell technology that have resulted in notable improvements in the efficiency, reliability, and cost-effectiveness of hydrogen fuel cell vehicles. One notable breakthrough lies in the development of robust and effective fuel cell stacks, which form the core of these vehicles' power systems. These upgraded fuel cell stacks can generate levels of power using the same amount of hydrogen resulting in improved efficiency and increased driving range.
Moreover, advancements, in hydrogen storage techniques have made it possible to store amounts of hydrogen in smaller tanks thereby further extending the range capabilities of hydrogen fuel cell vehicles.
- Industry Collaboration- The expansion of the market for hydrogen fuel cell vehicles greatly depends on collaboration within the industry. When companies join forces it can result in advancements, in fuel cell technology, leading to enhanced efficiency, reliability, and affordability of these vehicles. As an example, BMW and Toyota have formed a partnership to manufacture hydrogen fuel cell vehicles by the middle of this decade. This collaboration will assist BMW in reaching its goal of achieving 50% electrification across its lineup two years earlier than originally planned for 2030.
- Long Driving Range and Quick Refueling: Hydrogen powered vehicles generally provide driving distances than electric vehicles that rely solely on batteries. Additionally, these hydrogen fuel cell cars can be refueled swiftly similar to gasoline-powered automobiles. For instance, hydrogen cars usually have an edge over electric cars. A hydrogen car can cover, more than 300 miles on just one tank while electric cars usually offer ranges of 200-300 miles. This helps alleviate concerns, about range limitations and offers consumers a familiar refueling experience.
Challenges
- High Cost of Infrastructure Development: The development of infrastructure poses a hurdle for hydrogen fuel cell vehicles (FCVs). The limited number of hydrogen refueling stations makes potential buyers wary of investing in FCVs as they have concerns, about the convenience and range of refueling options.
- Limited availability of hydrogen fuel cell vehicle models
- Hydrogen FCVs face strong competition from battery electric vehicles, which have advanced in technology and cost
Hydrogen Fuel Cell Vehicle Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
46.2% |
|
Base Year Market Size (2024) |
USD 2.12 billion |
|
Forecast Year Market Size (2037) |
USD 269.01 billion |
|
Regional Scope |
|
Hydrogen Fuel Cell Vehicle Segmentation
Vehicle Type (Passenger Cars, LCVs, HCVs)
The passenger cars segment in the hydrogen fuel cell vehicle market is estimated to gain the largest revenue share of about 57% in the year 2037. The segment growth can be attributed to the booming demand for passenger cars from the growing middle-class population, increasing disposable income, and the availability of affordable finance for vehicles.
Additionally, the increasing demand for electric vehicles and the growing preference for ride-hailing services are also contributing to the growth of the passenger car segment. Hydrogen fuel cell vehicles provide a more efficient and cleaner form of transportation than traditional gasoline and diesel-powered vehicles. Additionally, they require less maintenance, have a longer range, and are more cost-effective than other types of vehicles.
Technology (Proton Exchange Membrane, Alkaline Fuel Cell, Solid Oxide Fuel Cell)
Hydrogen fuel cell vehicle market from the proton exchange membrane segment is estimated to gain a significant share in the year 2037. The segment growth can be attributed to the proton exchange membrane fuel cells (PEMFCs) being an attractive alternative to traditional combustion engines because they offer higher efficiency and lower emissions.
Additionally, they require less maintenance than other fuel cell types, making them more cost-effective. As a result, they have become increasingly popular for the production of zero-emission vehicles.
Our in-depth analysis of the global hydrogen fuel cell vehicle market includes the following segments:
|
Vehicle Type |
|
|
Technology |
|
|
Range |
|
Want to customize this research report as per your requirements? Our research team will cover the information you require to help you take effective business decisions.
Customize this ReportHydrogen Fuel Cell Vehicle Industry Regional Synopsis
APAC Market Forecast
Hydrogen fuel cell vehicle market in Asia Pacific, amongst the market in all the other regions, is anticipated to hold the largest with a share of about 37% by the end of 2037. The market growth in the region is expected on account of the increasing government initiatives throughout the region and the availability of a wide range of vehicles powered by fuel cells. Various initiatives such as the Hydrogen Council and the 'Hydrogen Road Maps' are being rolled out in the region, which will further improve the market growth. A directive from China's Development and reform commission issued in November 2021 mandated the production of 5,000 hydrogen fuel cell vehicles for port transportation, buses, and intercity logistics by 2025. This mandate will spur the production of hydrogen fuel cell vehicles, which will lead to an increased demand for hydrogen fuel and the necessary infrastructure to store and transport it, thus driving the market growth in the region.
European Market Analysis
The European hydrogen fuel cell vehicle market is estimated to be the second largest, registering a share of about 27% by the end of 2037. The market expansion can be attributed majorly to the European Commission’s commitment to lower carbon emissions and the increasing awareness about the benefits of hydrogen fuel cell vehicles. For instance, Daimler announced in May 2022 that they are planning to include electric vehicles and hydrogen fuel vehicles in their portfolio by 2030. This is leading to the development of more efficient and cost-effective hydrogen fuel cell vehicles.
Companies Dominating the Hydrogen Fuel Cell Vehicle Landscape
- General Motors Company
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Volvo Group
- AUDI AG
- Ballard Power Systems, Inc.
- MAN SE
- BMW Group
- Daimler AG
- Hyundai Motor Group
In the News
- Hyundai Motor Company unveiled its model the XCIENT Fuel Cell tractor, which is a fuel cell electric vehicle designed for the North American commercial vehicle market. This class 8 6x4 model was showcased at the Advanced Clean Transportation Expo (ACT Expo).
- Daimler Truck AG and Volvo Group have recently announced their groundbreaking plan for the venture cellcentric, which aims to promote the adoption of hydrogen based fuel cells in long haul trucks and other applications. This marks a commitment from both companies to advance the use of this technology, in the transportation industry.
Author Credits: Dhruv Bhatia
- Report ID: 3616
- Published Date: Oct 10, 2024
- Report Format: PDF, PPT
